South Centre Cautions African Countries when Approaching Economic Partnership Agreements

The way EPA has been conceived, based on the requirement for reciprocal market opening with the European Union (EU), is likely to bring more losses than gains for Africa. The gains are not much, as the Least Developed Countries (LDCs), which make up 34 out of 47 African countries negotiating the EPAs, can avail of the Everything But Arms (EBA) preferential scheme of the EU. And the value of the preferences African countries will reap from an EPA will essentially become nil in about 5 to 10 years. It is of vital importance for developing and the least developed countries, that the options for industrialisation for future generations are not foreclosed.

Read the press release at:

http://www.southcentre.org/index.php?option=com_docman&task=doc_download&gid=1247&Itemid=

Press Release: New Voting Formula at IMF Falls Short of Bringing Genuine Change

Last week, the International Monetary Fund (IMF) cautiously backed plans for some redistribution of voting power among its 185 member countries.

Dr. Yash Tandon, Executive Director of the South Centre, a Geneva-based intergovernmental thinktank for developing countries, said that "the proposed changes with respect to votes in the IMF as a result of a new voting formula – while positive in recognizing the need for such changes – do not however go far enough to remedy the governance imbalance in the IMF. What is being proposed is too little and preserves developed country control over the IMF. To be genuine about sharing governance power in terms of votes, the increase should be much more.

Genuine IMF governance reform will not occur simply through marginal increases of voting rights. The real issue is how developing countries can have a stronger ‘voice’ in IMF governance and actually shaping how the institution is run. This means that other aspects of IMF governance must also be dealt with – e.g. enhancing developing country collective action and voice in the IMF by making the constituency system more representative and strengthening the multilateral and developing country institutions that support them."

See South Centre press release at: http://www.southcentre.org/info/news_views/IMF_Voting_Rights_1April08.pdf

See quote appearing in the article "IMF governance renovations: fresh paint while foundations rot" by Bretton Woods Project: http://www.brettonwoodsproject.org/art-561041